halfon

I am planning to lease the RX-8. Two leasing companies have given me two different methods to compute the residual payment. Which is right, scenario one or scenario two (I have attached an Excel spreadsheet with the side to side calculations.)

The basic assumptions are the same, deposit is $ 4680. My monthly lease payments must be exactly $920 with taxes.

Scenario one on the left, has no GST calculations on the downpayment. The scenario on the right, number two, shows that the leasing company has to pay to Mazda, not only the purchase price, but also the GST, thus the amount I borrow from the leasing company is higher. Also the downpayment includes taxes, and therefore the downpayment is less, since some of it is taxes.

Scenario 1 has a much lower buyback payment than scenario 2, but which of the two is right ? Or are they both wrong ?

I would like to know before I sign on the dotted line.

Thanks for the help. The excel file is attached.

halfon

I could not upload the Excel file

MyRxBad

iTrader: (1)

I'm paying less then 920 a month and I'm financing with about $4500 down. Leasing should always be cheaper then financing. What's the % interest on the vehicle and the orginal purchase price?

I would say it's too much....

halfon

I chose 920 a month to have a low buyback price.

The interest rate is 4.75 and the leassor fee 63 a month.

I posted the calculations in the attached doc file.

I have also decided to pay the GST upfront since I can write it offl.

Thus, my monthly payments would be 800+PST 64 or 864.

rotorian

Halfon,
The leasing company does have to pay the GST, but then they get it back from the government as an input tax credit. It is then their responsibility to collect any taxes from you. You have to pay GST and PST on any downpayment and then the monthly payment. So if you give them $4680.0, then $610.00 goes to taxes. Your true down is then $4070. The correct calculation is the one with the $5697 residual. Your due on delivery should be $4070+$610 taxes+$75 gas tax + $199. admin +$41.10 on those two +$920 1st +$920 security + $85 PPSA + $10 lic +$20 gas. I think that totals $6950.10 I am in the leasing business and this is what it should be.

What leasing company are you using? Are you guaranteeing the residual?
I believe you shouldn't take such a low residual, it defeats the purpose of leasing, are you absolutely sure you will buy it and keep it after 48 months?
PM if you like and we can correspond by reg e-mail.

JAYMURR

Yikes. I am about to lease and I was quoted 700$ a month with 7K down. I beleive this includes all the taxes and such. Do you think that's a fair deal?

halfon

It all depends on the buyback price at the end of the lease. You also have to consider the %interest and the monthly commission the leasing company charges you.

Thus, the figures you mention can not be evaluated out of context.

Wing

Wow I was paying $800 a month with only $1500 down for a purchase!

The lease rate seems high!